How Much Do You Need to Earn for a £180000 Mortgage?

How Much Do You Need to Earn for a £180,000 Mortgage?

If you’re asking how much do you need to earn for a £180000 mortgage, you’re likely trying to work out whether a property is realistically affordable before making an application. Many people want a simple income figure, but mortgage affordability is influenced by more than salary alone.

This guide explains the typical income needed for a £180,000 mortgage, how lenders calculate affordability, and what factors can increase or limit how much you’re able to borrow.

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Quick Answer: How Much Salary Is Needed?

In simple terms, most lenders work to an income multiple of around 4 to 4.5 times annual income.

Based on that:

• £180,000 ÷ 4.5 = around £40,000
• £180,000 ÷ 4 = around £45,000

So, you’ll usually need to earn between £40,000 and £45,000 to borrow £180,000, assuming you don’t have significant debts and your living costs are fairly standard.

This is only a guide — affordability checks ultimately decide whether the mortgage is approved.

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How Lenders Work Out Affordability

Income multiples set the maximum borrowing level, but affordability testing determines whether the monthly repayments are sustainable.

When assessing a mortgage application, lenders typically look at:

• Your income (salary, overtime, bonuses, or self-employed earnings)
• Regular outgoings such as loans, credit cards, childcare, and maintenance
• Existing credit commitments
• The mortgage term you choose
• Stress testing to see if repayments remain affordable if rates increase

Even if your income fits the multiple, high monthly outgoings can reduce the amount a lender is willing to offer.

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Income Requirements for Different Buyers

Single applicants

If you’re applying on your own, lenders rely entirely on one income. In most cases, a single buyer will still need around £40,000–£45,000, with minimal unsecured debt and stable income.

Single-income affordability is looked at more closely, which is why many people explore lender options beyond their own bank. This is covered in more depth in our guide on getting a mortgage on one income.

Joint applicants

Joint applications allow incomes to be combined. For example:

• £25,000 and £20,000 combined = £45,000 household income

This often makes affordability more comfortable, even if one income is relatively modest.

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What Are the Monthly Repayments on a £180,000 Mortgage?

Monthly repayments depend on the interest rate and mortgage term.

As a rough guide:

• Over 25 years: typically around £900–£1,100 per month
• Over 30 years: lower monthly payments, but more interest overall
• Shorter terms: higher monthly cost, but less interest paid in total

Lenders check that these payments remain affordable not just today, but if interest rates rise in the future.

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How Your Deposit Affects How Much You Need to Earn

A larger deposit can make a noticeable difference to affordability.

While the mortgage amount stays the same, a higher deposit can:

• Reduce lender risk
• Improve available interest rates
• Make affordability assessments more flexible

Typical scenarios include:

• 10% deposit: standard criteria
• 15–20% deposit: improved lender choice and affordability

If your deposit is smaller, lenders may expect a higher income to offset the risk.

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Can You Get a £180,000 Mortgage With Bad Credit?

Yes — it’s possible, but expectations may change.

Lenders usually consider:

• How recent the credit issues were
• Whether debts are settled
• Your financial behaviour since the issue occurred

Missed payments, defaults, or older CCJs don’t automatically prevent borrowing £180,000, but you may need a larger deposit or a lender with more flexible criteria. Specialist lending options are often used in these situations.

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What If You’re Self-Employed?

Self-employed applicants can still qualify for a £180,000 mortgage, but income is assessed differently.

Most lenders will look at:

• Two years of accounts or tax records
• Averaged income over recent years
• Salary and dividends for company directors

Some lenders take a more flexible view, especially where income is stable or increasing. Self-employed affordability is explained in more detail in our guide for self-employed first-time buyers.

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What Can Reduce Your Borrowing Power?

Even if your income appears high enough, lenders may reduce the amount you can borrow due to:

• Personal loans or car finance
• Credit card balances
• Childcare costs
• Maintenance payments
• Regular overdraft use

Bank statements are a key part of this assessment, which is why understanding how lenders review spending patterns can be important.

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How to Improve Your Chances of Affording a £180,000 Mortgage

Improving affordability is often more effective than increasing income alone.

Helpful steps include:

• Reducing unsecured debt
• Avoiding overdraft use
• Holding off on new credit applications
• Keeping spending consistent before applying
• Saving a larger deposit where possible

Small financial changes can have a meaningful impact on lender calculations.

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What If Your Bank Says You Don’t Earn Enough?

A decline from a bank doesn’t necessarily mean a £180,000 mortgage isn’t achievable.

High street lenders often use strict affordability models and exclude certain income types. Other lenders may:

• Accept variable or multiple income streams
• Take a more balanced view of credit history
• Apply different stress-testing assumptions

Understanding lender criteria — rather than applying repeatedly — can significantly improve outcomes.

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Key Takeaways

• Most borrowers need £40,000–£45,000 income for a £180,000 mortgage
• Income multiples are only part of the decision
• Monthly outgoings matter just as much as salary
• Larger deposits improve affordability and lender choice
• Specialist lenders may help where banks decline

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This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.